By Kuno Neumeier, CEO Logivest
The German economy is shrinking. Leading economic research institutes have just lowered their growth expectations for the current year - from 0.8 per cent to just 0.1 per cent real GDP growth. Almost one in three industrial companies in Germany is already relocating its research and development activities abroad or is at least considering doing so. But Germany has also long since ceased to be the first choice as a production location. ‘Made in Germany’ is in danger of collapsing due to high energy and labour costs, strict regulations and rigid bureaucracy. These effects are also increasingly reflected in the logistics property market.
The US government's new customs policy poses new challenges for the global economy. This is putting additional pressure on export-oriented industries such as mechanical engineering, the automotive and pharmaceutical industries.
To counter this, we need a joint strategy. And I'm not just talking about Germany - even if the need to reduce bureaucracy in this country is absolutely undisputed - but about a clear approach across Europe. In my view, the former CEO of Siemens, Joe Käser, summed it up perfectly after the World Economic Forum in Davos. He summarised that although Europe is determined to do the right things, there is a lack of focus, implementation and, above all, speed. What is needed is a clear strategy to lead ‘Enterprise Europe’ - a MEGA project: Make Europe Great Again!
Germany urgently needs an economic turnaround! But in order to hold our own against the growing competition from Asia and the USA - and thus strengthen the domestic economy again - we don't need lone warriors, but a united Europe!
